|
| As far as the hog production, I will tell you what i know. There has been an explosion of these building in my area in the last 3 years. A friend has gotten into them in a big way and i have to admit, i have been looking into it.
The contract is paid per pig space. It is paid on a monthly basis and paid whether you have pigs in the building or not. Depending on your contract, it pays 40.00 +/- per pig space annually. With 4000 head/building, you do the math. This is paid when between cycles or whatever else is going on. Because of this, it is to their advantage to keep the building as full as possible.
That being said, it is as good as your hog integrator(supplier). You do have a contract as long as that company is a viable entity. One up side is that these integrators have contracts to supply volumne direct to slaughter houses which gives them a value added commodity to secure their profitability.
As I said, I am looking into the possibility of these operations. For the investment, it is a huge step for me. If it pays off though, the rewards can be equally huge.
INDY | |
|
Hog Buildings and other ramblings
